On July 25, 2019 Neuralstem, Inc. (Nasdaq: CUR) ("Neuralstem" or the "Company") reported the pricing of its underwritten public offering of an aggregate of 2,777,777 units at a public offering price of $2.70 per unit for gross proceeds of approximately $7,500,000, before deducting discount and commissions and estimated offering expenses (Press release, Neuralstem, JUL 25, 2019, View Source [SID1234537765]). Each unit is comprised of one share of common stock (or common stock equivalent), one short-term warrant to purchase one share of common stock and one long-term warrant to purchase one share of common stock (collectively, a "warrant combination"). In addition, the Company has granted the underwriters a 45-day option to purchase up to an additional 416,666 shares of common stock and/or additional 416,666 warrant combinations at the public offering price per share and per warrant combination, before deducting underwriting discounts and commissions.
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H.C. Wainwright & Co. is acting as the sole book-running manager for the offering.
Each short-term warrant has an exercise price of $2.70 per share, is exercisable immediately and terminates on December 31, 2020. Each long-term warrant has an exercise price of $2.70 per share and is exercisable immediately for five years from the issuance date. The shares of common stock (or common stock equivalents), the short-term warrants and long-term warrants comprising the units will be immediately separable upon issuance and will be issued separately. This offering is expected to close on or about July 30, 2019, subject to customary closing conditions.
The net proceeds of the offering are expected to be approximately $6.6 million, after deducting underwriting discounts and commissions and estimated offering expenses. The Company intends to use the net proceeds of the offering for the further development of our stem cell and small molecule assets, advancement of the Company’s acquisition and in-licensing strategy and general corporate purposes.
The securities described above are being offered by the Company pursuant to a registration statement (file no. 333-232273) previously filed with and declared effective by the Securities and Exchange Commission (the "SEC") on July 25, 2019. The offering is being made only by means of a prospectus forming part of the effective registration statement. A preliminary prospectus relating to the securities being offered has been filed with the SEC and is available on the SEC’s website at www.sec.gov and a final prospectus will be filed with the SEC. Electronic copies of the final prospectus relating to the offering may be obtained, when available, from H.C. Wainwright & Co., LLC, 430 Park Avenue, 3rd Floor, New York, NY 10022, by telephone at (646) 975-6996 or by email at [email protected], or at the SEC’s website at www.sec.gov.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.